Portugal: EIB signs a EUR 150 million loan with CGD to support SMEs and midcaps

The European Investment Bank (EIB) will grant a EUR 300 million loan to Caixa Geral de Depósitos (CGD) to facilitate financing of small and medium-sized investment projects implemented by Portuguese SMEs and midcaps. Part of this loan will also be aimed at funding projects of public entities and

other promoters in sectors including health, education and energy and also to finance public service facilities. The first EUR 150 million tranche of the agreement was signed today in Lisbon by EIB Vice-President Román Escolano and CGD’s CEO Paulo Macedo and CFO José Brito.

This EUR 300 million loan will be complemented by financing for the same amount provided by CGD for the targeted projects, leading to a total of EUR 600 million of financing that will be made available by CGD to SMEs and midcaps. Thanks to the EU bank’s support, SMEs and midcaps will benefit from access to long-term financing on favourable terms for their investments and working capital needs as CGD will pass on to final beneficiaries the EIB’s advantageous financing in terms of both maturity and interest rates. The EIB loan signed today with CGD will enable financing of individual projects of up to EUR 12.5 million for SMEs and up to EUR 25 million for midcaps.

CGD is a long-standing and important financial intermediary for the EIB in Portugal in supporting small and medium-sized Portuguese companies. The first finance contract between the EIB and CGD was signed already in 1980 prior to Portugal joining the EU in 1986. A similar financing agreement between the EIB and CGD was signed in 2014 for EUR 300 million and helped to support the Portuguese economy by financing more than 500 projects, mainly in the manufacturing and trade sectors.

In 2016, the EIB Group provided EUR 33,600 million for small businesses, reaching 300,000 companies throughout Europe. Last year, in Portugal the EIB Group signed loan agreements totalling EUR 1,780 million including EUR 1,196 million that contributed to supporting more than 8,200 Portuguese SMEs.